International Institute for Population Sciences
Deemed to be University (An Autonomous Organization of Ministry of Health & Family Welfare, Government of India)

Demographic Transition and Gendered Wage Differentials in Kerala: An Oaxaca Decomposition Using PLFS 2023–24 Dr. Merlin Premala J Senior Research Fellow, International Institute for Migration and Development merlinjpremala@gmail.com Abstract Introduction Kerala, widely recognized for its progressive social development indicators, presents a paradox in labour economics: persistently low female labour force participation and pronounced gender-based wage disparities, despite high educational attainment among women (Ministry of Statistics and Programme Implementation [MoSPI], 2024). These disparities are not monolithic but vary across age cohorts, reflecting life-cycle dynamics in workforce entry, sectoral segregation, and labour market exclusion. Objective and Methodology This study examines age-differentiated gender wage gaps in Kerala using unit-level data from the Periodic Labour Force Survey (PLFS) 2023–24. Employing the Oaxaca-Blinder decomposition method, the analysis disaggregates wage differentials into explained and unexplained components. The working-age population is segmented into four cohorts 15–29, 30–44, 45–59, and 60+ to assess how wage gaps are influenced by educational attainment, employment type, sectoral distribution, marital status, and geographic location. Critical Findings and Conclusion Using a threefold decomposition framework, the study distinguishes between endowment effects (differences in human capital and job characteristics), coefficient effects (returns to these endowments), and interaction terms. Findings reveal a widening wage gap with age, driven by occupational stratification, informal labour market dynamics, and systemic undervaluation of women’s labour particularly in rural and casual employment segments.